Lending Tree performed a recent survey further confirming that the U.S. has been the most generous country in the world for nearly 250 years and over 60% of Americans say they’ve donated to charity; 34% did so more than once. (See Jimmy LaRose’s 2018 Charitable Giving Soars Thanks to Tax Reform to learn more.) Lending Tree surveyed over 1,000 Americans to get a better understanding of how often Americans donate, who they’re donating to, and if anything holds them back from donating more. A quick look at what we found:
It seems that most of us are actively giving to charity — close to two out of three Americans have donated within the last year. What’s more, over a third have given on more than one occasion. Research suggests that a pay-it-forward effect may be at play, helping to boost rates of charitable giving. Acts of kindness and generosity appear to be contagious and can spread up to three degrees — from person to person to person — according to researchers at Harvard and the University of California, San Diego. In other words, giving may inspire others to do the same.
Americans are donating to a variety of charitable organizations. The top three categories deal with health, human services & education. Religious organizations come in right behind those, followed by environmental causes. To some degree, the wide range of causes here can be chalked up to personal taste. According to research from the University of Kent in the United Kingdom, donors typically support organizations that are either in line with their own preferences or help people or causes they relate to. People are also more likely to donate when they know their money will help a specific person — as opposed to a general cause.
This survey revealed some pretty interesting generational trends when it comes to charitable giving. Members of Gen Z have the highest incidence of monthly donations to the same charity. On the flip side, despite seeing a decrease in their debt burdens, baby boomers aren’t making as many recurring monthly donations. Key findings highlight other generational gaps. Millennials, for instance, are more likely to donate to a crowdfunding campaign. Meanwhile, boomers are directing more donations toward religious causes.
Charitable giving pulls double duty — it makes you feel good and may count as a tax deduction. This means you’re reducing your taxable income and, as a result, bringing down your tax bill. The IRS allows you to write off donations made to 501(c)(3) non-profit organizations, so be sure to hang onto your receipts throughout the year. Plus, the benefits of altruism go beyond your tax liability. According to Harvard researchers, spending money on others is more satisfying than spending it on ourselves, regardless of our culture or income level. To incorporate charitable giving into your financial life, consider folding it into your monthly budget. After accounting for fixed expenses and setting money aside for financial goals (like paying down debt and saving for retirement), a portion of what’s left can be earmarked for monthly giving.
Seventy-one percent of those surveyed said their debt prevented them from donating as much as they would like. And 56% of survey respondents cited a lack of cash as a barrier to charitable giving.
If debt is standing between you and charitable giving, you may consider these two options:
• Consolidating debt with a personal loan could slash your total cost for repayment by bringing you more favorable terms. However, this option is best suited for borrowers with strong credit; subpar credit borrowers could see rates in the triple digits, if they qualify at all.
• Consider tweaking your budget to potentially free up more cash to put toward your favorite charities. You might trim the amount of money you put toward dining out or entertainment. Remember: You don’t have to donate a lot to make a difference. Even skipping one night out could make a difference.
Lending Tree commissioned Qualtrics to conduct an online survey of 1,079 Americans, with the sample base proportioned to represent the general population. The survey was fielded September 11-13, 2019.
For the purposes of this survey, we defined generations as follows:
• Generation Zers are ages 18-22
• Millennials are ages 23-38
• Generation Xers are ages 29-53
• Baby boomers are ages 54-73
Members of the Silent Generation (ages 74 and older) were also surveyed, and their responses are included within the total percentages among all respondents. However, their responses are excluded from the charts and age breakdowns due to the smaller population size among our survey sample.
Lending Tree Says, “American Generosity is Unprecedented” was originally posted by Marianne Hayes. Marianne is a longtime freelance writer and content marketing specialist. Since earning her degree in journalism and creative writing from the University of Central Florida, her work has been published in Cosmopolitan, Redbook, Good Housekeeping, Forbes, Yoga Journal and more. In addition to writing, Marianne teaches local storytelling workshops in Tampa and is a hopeless bookworm. Her original article was titled 71% of Americans Say Debt Keeps Them From Donating More to Charity.